Microsoft 'White Spaces' Wireless Device Stymied Again

Another bad break for Microsoft, one of a handful of tech
companies trying to get the FCC to
open up free wireless spectrum for next-gen mobile devices.
Last month, Microsoft submitted its second device to the FCC that
uses chunks of airspace between TV channels -- known as "white
spaces" -- to transmit data/voice/etc. Today, the WSJ
reports that the device failed, just like Microsoft's first
device did last year.

On two consecutive days, after lengthy testing, the device broke
down, according to Ian Ferrell, director of wireless incubation
at Microsoft. "We're not exactly sure what the issue is. It seems
to be a power thing," Mr. Ferrell said.

This is a letdown for Microsoft (MSFT), but not the end of the
world. The FCC still has devices to test from four other
companies, including Motorola (MOT).

And
as we said last month, Microsoft's real long-term hurdle
won't be the FCC or flaky gadgets, but the well-funded telecom
lobby. Microsoft, etc. are trying to get the FCC to open up this
"unlicensed" wireless spectrum for free. But the wireless
industry is in the middle of a FCC spectrum license auction,
which has so far raised almost $20 billion for the government.
Why should they invest billions of dollars in wireless networks,
they will argue, when rivals could offer similar services for
free?